Reverse Mortgage Interest Rates

Interest rates are important in two ways:

1. Lower rate means less interest charges over the life of the loan and more equity to your heirs.
2. A lower expected interest rate based on a lower margin, provides more proceeds to the homeowner and a higher principle lending limit.

At ReverseMortgageStore.com we can offer you a variety of products through American Pacific Mortgage, a nationally recognised Mortgage Banker licensed in over 18 states with over 150 branches.

You can choose a fixed or adjustable rate reverse mortgage. Your needs and desires will determine the best rate option for you. The fixed rate is a very desirable option because you don’t have the risk of higher rates in the future, but it requires the borrower to take the entire available loan funds at the beginning of the transaction. If you need funds, to pay off an existing mortgage or debt, the fixed rate reverse mortgage makes a lot of sense. But if you don’t need that money until the future, you may be adding interest to your loan balance unnecessarily. With a line of credit or monthly payment option you are not charged interest until you access funds and these options are tied to a variable interest rate.

If you are on a means based public assistance program such as SSI or Medical, you should not take a large cash draw as that may disqualify you from the public programs.

If you want to get the most amount of money from the reverse mortgage loan, the fixed interest rate option will be the best program for you.

As you can see, many factors are involved in deciding on the right rate option and program for you. Please call (800 ) 489 0986 to discuss the options and talk to the reverse mortgage counselor so you make the best decision.

Historical Rates Comparison Charts

LIBOR stands for "London Inter-Bank Offered Rate." It is based on rates that contributor banks in London offer each other for inter-bank deposits. From a bank's perspective, deposits are simply funds that are loaned to them. So in effect, a LIBOR is a rate at which a fellow London bank can borrow money from other banks. Rate calculations are complex as they incorporate variables such as time, maturity and currency rates. There are hundreds of LIBOR rates reported each month in numerous currencies.

One month LIBOR Historical Rate Chart

Historical rate comparison of 6 month LIBOR, 4 year LIBOR and 1 year CMT indexes

Historical rate comparison of 3 month LIBOR, 6 year LIBOR and 1 year LIBOR indexes

Please call (800 ) 489 0986 to discuss the options and talk to the reverse mortgage counselor so you make the best decision